An Act protecting consumers from unreasonable utility rate increases

This bill limits electric and gas utility companies' allowed return on equity (a measure of profit) to the average approved in neighboring states (Connecticut, Rhode Island, Maine, Vermont, New Hampshire) over the past four years. It directly affects Massachusetts utility companies seeking rate increases through state regulatory proceedings. The bill prohibits approving a higher return than this regional average, with limited exceptions only if a company's constitutional rights would otherwise be violated. It specifically excludes compensation from certain efficiency programs and performance incentives when calculating the allowed return.